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Initial Reserve Estimate And Reserve-Based Mine Plan For Silvertip Mine

CHICAGO - Coeur Mining, Inc. reported initial reserve and updated resource estimates, based on drilling results for its Silvertip silver-zinc-lead mine located in northern British Columbia. The Company also provided a reserve-based mine plan and economic analysis underpinned by these estimates. A technical report in support of the information described and prepared in accordance with National Instrument 43-101 (NI 43-101) will be filed.
“We are pleased with the successful conversion of a large portion of the resource to an initial reserve and related mine plan at Silvertip,” said Mitchell J. Krebs, Coeur’s President and Chief Executive Officer. “We look forward to continuing our exploration efforts to expand the size of this prospective, high-grade deposit and further extend the mine life. In the near-term, we remain focused on optimizing the processing plant as well as achieving a sustainable level of mining and processing activities, which is reflected in this initial mine plan. We have made substantial progress over the past fourteen months since acquiring Silvertip and will carry that momentum into 2019. Silvertip has enhanced our geographic and political risk profile and is expected to be a long-term source of high-margin cash flow. We remain excited about its potential and its evolution into one of the Company’s cornerstone assets.”
Summary Highlights: Initial proven and probable reserve of 1.6 million tonnes (1.8 million tons), including 48.2 million silver equivalent (“AgEq”) contained ounces at an average AgEq1 grade of 930 grams per tonne (g/t) (27.13 ounces per ton (“oz/t”)); Approximately 15.0 million ounces of silver, 292.7 million pounds of zinc and 198.7 million pounds of lead; 14% increase in companywide AgEq1 reserves2 and 13% increase in companywide AgEq1 reserve grade; Approximately 58% of resource tonnage converted to reserves; Additional 1.2 million tonnes (1.3 million tons) of measured and indicated resources and 0.5 million tonnes (0.6 million tons) of inferred resources, conveying potential for further resource growth and mine life extensions; Approximately 18% increase in total resource4 since Coeur acquired the asset in October 2017; Measured and indicated resource of approximately 28.4 million AgEqOz1 at an average grade of 752 g/t (21.94 oz/t); Inferred resource of approximately 14.7 million AgEqOz1 at an average grade of 867 g/t (25.28 oz/t); Initial mine life of 4.5 years based on proven and probable reserves, representing; Approximately 49% of the total estimated resource; Production rate of approximately 1,000 mtpd (1,100 tpd); Approximately 24% of reserve-based mine plan utilizes long hole stope mining; Expected average annual production of approximately 8.2 million AgEqOz, including 2.9 million ounces of silver, 45 million pounds of zinc and 37 million pounds of lead; Total capital costs of $44 million to support the continued acceleration of underground development activity and mill upgrades; Initial pre-tax cash flow of $164 million; and Initial pre-tax NAV5% of $147 million
Coeur commenced mining and processing activities at Silvertip in March 2018 and declared commercial production on September 1, 2018. The Company completed its initial drilling program in July 2018 and commenced a second phase drilling program focused on resource conversion and expansion drilling. Year-to-date6, the Company has invested approximately $11 million in exploration at Silvertip, including $8 million on capitalized infill drilling and $3 million on expensed resource growth and greenfields drilling.
The Company remains focused on improving process plant performance, underground rehabilitation and development as well as completing several key surface infrastructure projects, including the 220-person camp facility. Construction of the camp facility is on schedule and budget, with completion expected at the end of January 2019. Coeur also recently completed the scheduled upgrades to Silvertip’s water treatment plant and is currently treating water at its permitted capacity. The Company continues to target mill projects that address safety, production and efficiency improvements.
The company’s address is 104 S. Michigan Avenue, Suite 900, Chicago, IL 60603, (312) 489-5800, www.coeur.com.